The main thing when trading (or looking to buy a cryptocurrency at a really good entry point) is that you’re going to want to identify the direction that a coin is traveling in. Now, even though this sounds easy I can assure you it really isn’t.
Cryptocurrency like all markets is 50/50, most of the time. Either traveling up or down.
There can be times though when a coin just travels sideways, known as “Bart” or “Barting”. This kind of sideways action gets its name after the Bart Simpson character’s hair style. Short movements moving only slightly up and down for a period of time.
What better way to start this blog off than to talk about Bitcoin (BTC).
This cryptocurrency coin is probably what got me into so much mess in the first place.
Let me explain…
In January 2018 I decided to check back on cryptocurrency. This is something that I had checked out before in 2010-11 when Bitcoin was just a baby and worth virtually nothing.
My first impressions back then were ‘Oh, a made up currency with invisible coded coins. It’ll never work.’
Curiosity did get the better of me though and I download a Bitcoin wallet, and for a brief moment, I did run a miner on an old laptop.
This would be impossible to do now due to increased difficulty in the mining code but back then was fairly straight forward to do.
That laptop is now broken and stuffed in a cupboard someplace, I don’t think I managed to work out how to store any coins on it.
I’m pretty sure I didn’t mine 1 Bitcoin, which would of been easy enough to do back then…
Reading that back over, that is a lot of uncertainty, maybe I’ll find the time to drag it out and check at some point.
Once I realised how long it would take to mine just 1 Bitcoin I considered buying £100 ($130 ish in today’s money) worth of them.
However, we were young parents at the time with a couple of tiny children, and pressing everyday expenses, I couldn’t justify spending the £100 on some random code.
Cryptocurrency… pfft, it’ll never work, remember?
Bitcoin hit $19,783 (£15,164 in today’s money) per Bitcoin on the 11th of December 2017!
Ha! £100, just £100, that is all I would of bought, which would of worked out to be around £1.5 MILLION! ($1.9M)
How wrong I was!!!
So, returning to January 2018 and I could never afford to buy a whole Bitcoin.
Something new to me though was ‘Alternative Coins’ (AltCoins).
These were other types of cryptocurrency, and a lot cheaper than Bitcoin, but were much higher in value at this time than when first released to the crypto market as ICO’s (Initial Coin Offering).
These were far more appealing to me at the time with the fact that I had money to invest, much more than I would of invested in Bitcoin back in 2010-11, and I sure as hell wasn’t going to miss out a second time!!
Yep, I was being a “Noob” and I had no idea what the meaning of “Catching a falling knife” meant.